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Alexander - I personally have never seen the need to frequent a sex shop, but all to their own I say and a sex shop can be a perfectly reasonable and legitimate business. It is not exactly a gain for Dover to see such a business close merely for yet another take-away to open.
Its closure could be for many reasons:
a lack of demand (I suspect not that given the lack of competition in the town)
under capitalisation leading to the inability to service suppliers and HMRC (quite possible in a recession and a very common problem that nearly all small businesses are up against)
a loss of interest by the shop owner (quite possible)
moving on to bigger and better premises (in which case good luck to them)
It is sad to see any (legitimate) business close.
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